Apple Stages Historic Rally Off $92

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Apple Inc. (NASDAQ: AAPL) shares were trading lower by $0.50 at $105.26 in Monday's session. It rallied $16.80 from its low off the open ($92.00) to $108.80 before falling back to its current level.

After a sharply lower open ($94.87 vs. Friday's close of $105.76), it revisited levels not seen since June 30, 2014 at $92.09. That was put in place as the issue was on its march to its all-time high on April 28 ($134.54) that was made following a better-than-expected Q2 earnings report.

The issue, which turned north well ahead of the broad market, was deluged with sell-stops and margin selling that were the major factors for such a sharp decline. After all, how can a company like Apple shed 13 percent of its value overnight?

Interestingly, Apple began trading at the $92 level after its 7-for-1 stock split in early June of last year.

For now, longer-term investors just may be keeping an eye on Friday's close ($105.76), the area in which it is now trading, to determine the next move in the biggest component of the S&P 500 Index.